National Investor Relations Institute White Paper on annual reports (09/2013).

1. © 2013 National Investor Relations Institute
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(703) 562-7700
www.niri.org
The Annual Report
By Ariel Finno, Director-Research (afinno@niri.org)
Matt Brusch, Vice President-Communications and Practice Information
A NIRI White Paper

2. NIRI White Paper: The Annual Report
© 2013 National Investor Relations Institute
Overview
Annual reports (AR) are in-depth, specific and complete products about a public
company’s activities throughout the past year. Typically, they are created with the
intention of giving stakeholders, potential investors, the media and the general public
information about company activities. In the last decade they have increased as one of
many marketing tools a company utilizes to highlight their keenest assets.
Although for some company’s creating an annual report is optional, many choose to do
so regardless, for the reasons noted above. Any information, be it financial or otherwise,
that may be of interest to shareholders or the public might be included in a company’s
annual report. While not alternatives to the annual report, Form 10-K’s (which are more
detailed than a traditional AR) are filed with the Securities and Exchange Commission
(SEC), while an annual report is distributed to shareholders. In recent years a shorter
version of the more traditional AR, called a 10-K Wrap (“Wrap”, or “Wrap report”) have
been distributed by some companies in lieu of a longer, more detailed report.
As technology transforms the investor communications process, the production,
dissemination and costs associated with the traditional annual report have received
increasing scrutiny. Responding to this trend, in 1995 the National Investor Relations
Institute (NIRI) developed a comprehensive survey research program designed to
measure change in how corporations develop and distribute the Annual Report to their
investment community constituencies.
Annual reports are a significant investment for many companies and a key
communications vehicle for investor relations officers. NIRI tracks trends in annual
report practices in order to help organizations benchmark against their peers. NIRI’s
objective with the Annual Report effort is to articulate trends impacting this important
investor relations tool.
Trend analysis can reveal how these different aspects of the annual report have evolved
over time.1
NIRI Research
NIRI has conducted an Annual Report Survey on a biennial basis for the past 17 years.
With recent and projected regulatory changes and rapid technological advances, the
goal of the NIRI Annual Report Survey is to present a history of past practices, a
snapshot of current trends and perhaps a small window into the future of the annual
report.
1
Previous NIRI work in this area includes the 2008 Annual Report Survey.

3. © 2013 National Investor Relations Institute
NIRI Annual Report Surveys typically detail particular annual report practices including:
 Design and types of materials included in AR
 Development and key leaders in production across company departments
 Annual report production
 Distribution
 Overall and specific budget items costs
 Assessment of AR by type of format
 Roles and responsibilities
 Company and individual demographics
In 2010, the National Investor Relations Institute (NIRI) surveyed corporate members on
key annual report subjects2
.
2010 Key Findings
 Respondents’ average annual report (AR) print budget was approximately
$103,000, down from $156,000 in 2008.
 The average cost per printed annual report copy was $7.69 versus $6.62 in
2008.
 The median budget was $60,000, down from $97,500 in 2008.
 The median per copy cost was $4.82 versus $4.32 in 2008.
 The average online annual report budget was roughly $11,800, down from
$17,000 in 2008.
 49% of those producing an online annual report indicated no incremental
production costs for this version, compared with 28% in 2008.
 57% of respondents work with the same firm for their print and online annual
report.
 10-K wraps remain the most popular annual report format. Among respondents
printing an annual report, 66% printed a 10-K wrap, 31% produced a traditional
AR, and 10% produced a summary AR. In 2008, these figures were 53%, 35%
and 12%, respectively.
NIRI again studied this subject in 2012 in order to assess the current utilization of
annual reports, and to extend trend data on industry practices. In January 2013, NIRI
released a report announcing the results of its survey of corporate investor relations
practitioner members.3
2
NIRI’s Annual Report Survey Shows Further Budget Pressures.
3
NIRI Annual Report Survey-2012.

4. © 2013 National Investor Relations Institute
2012 Highlights
 The percentage of respondents tracking the effectiveness of their printed AR
continues to increase. The percentage of those who reported assessing and
monitoring printed AR effectiveness rose to 44% from 39% in 2010, and 25% in
2008.
 In lieu of a traditional annual report, respondents continue to utilize alternative
annual report formats such as the Summary Annual Report and the 10-K Wrap.
 In 2012, 43% of all annual reports printed were 101 pages or longer, whereas in
2004, it was 19%.
 The median budget for preparation and printing of annual reports was $65,000.
In 2012 print budgets saw a small increase of 2%, after four years of decline and
adjusting for inflation.

5. © 2013 National Investor Relations Institute
More Information
For complete survey results, please visit www.niri.org, or contact Ariel Finno, Director of
Research, (703) 562-7678, afinno@niri.org.
About the National Investor Relations Institute
Founded in 1969, the National Investor Relations Institute (NIRI) is the professional
association of corporate officers and investor relations consultants responsible for
communication among corporate management, shareholders, securities analysts and
other financial community constituents. The largest professional investor relations
association in the world, NIRI’s more than 3,300 members representing over 1,600
publicly held companies and $9 trillion in stock market capitalization.